AngelEquity provides wholesale investors with access to a broad selection of early stage investments presented by angel groups from around the country.

Bill Murphy, Bay of Plenty

“The angel investing model is the best way to invest in early stage companies,” says Bill Murphy, founder of Bay of Plenty angel investor group and the team behind AngelEquity, Enterprise Angels. “Angel investors have a huge amount of experience in early stage investments and we put every investment opportunity through a rigorous pre-selection process including due diligence, negotiating investor terms and company valuation.”

All AngelEquity deals have passed due diligence and already have a minimum of 25% angel investment in their current funding round. “AngelEquity opens these exciting investment opportunities up to the wider market of wholesale investors, on the same terms negotiated by the angels,” says Murphy.

Recent changes to the definition of wholesaler investor in the Financial Markets Conduct Act 2013, mean that more Kiwis now meet the criteria. “We’re not just talking about banks or institutions,” says Murphy. “Many high net-worth individuals, or people with sophisticated knowledge and experience of financial markets are now considered wholesale investors.

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Bridget Unsworth, Investment Director of New Zealand Venture Investment Fund, says the AngelEquity intiative will help deepen the pools of capital available, as well as providing investors with the comfort of knowing that deals have been vetted by experienced angel investors. “Angel investment is at healthy levels, but there remains a demand for more capital, particularly as companies develop and need new rounds of investment to maintain their progress.

Suse Reynolds, Executive Director of the Angel Association of New Zealand, agrees. “Early stage, high growth companies are always looking for capital. Without capital the growth path is exponentially slower.”

Reynolds believes there is still plenty of room for growth and specialisation in this end of the capital markets.

“It’s a highly risky part of the market to play in but absolutely vital for New Zealand’s future economic and social wellbeing,” says Reynolds. “These companies are the Xeros and F&P Healthcare companies of the future. And what these companies need as much as the capital is exposure and support – the expertise and connections that the capital can help deliver.”

Murphy believes that angel investing is now a vital part of the worldwide economy. “For the past several years, angels have invested over $50 million a year in New Zealand companies. And it’s not just about financial return – the most important part is the skills we put in, because that’s where these companies really benefit. We are making a difference by investing our time and money in exciting young companies.”

Visitors to the AngelEquity website are able to view brief information on current and closed deals. To protect the privacy of investors and the confidentiality of the investee company information, only registered and verified wholesale investors and angel group members are able to view full details, including due diligence summaries and investor lists.

Opportunities currently available on the AngelEquity platform include:(click here to go to AngelEquity site)